All it took to improve investor sentiment was a few up days in the market. The weekly AAII Investor Sentiment Survey reported that bullish sentiment rose to 30.80% from 20.74%, and bearish sentiment fell
42.21% from 49.47% during the previous week. The percentage of investors who described themselves as neutral on the stock market fell to 27.00% from 29.79%, according to the poll. The data is pretty much what you expect to see after the recent market rally. Last week's 49% bearish sentiment was high, but major market bottoms usually coincide with a bearish number of around 55%. We have not yet seen that, which makes it hard to say that we made a definitive market bottom. At best, it looks like a short-term trading bottom.
Below is a 3-month chart.
2-Year Chart AAII Sentiment Survey
September Thoughts From Marc Faber
AAII Investor Sentiment Plummets--Contrary Buy Signal?--Aug 26
Black Swan Insights